Madeira and the Azores vs mainland Portugal (2026): where buying a home costs less
For a tax-resident buyer, a home in Madeira or the Azores pays less IMT than the same home on the mainland, or the same at the top end, because the islands' IMT brackets are 25% higher. Stamp duty, fees and the non-resident rate are the same everywhere, so a non-resident buyer pays the same in all three. Madeira and the Azores share one set of tables, so they always cost the same.
Key facts
- The islands' IMT bracket limits are 25% above the mainland's; the rates are the same (Ofício Circulado 40129/2026, tables IV to VI).
- Own permanent home: no IMT up to €132,933 in the islands, against €106,346 on the mainland.
- Under-35 first home: no IMT up to €413,174 in the islands, against €330,539 on the mainland.
- Non-residents pay a flat 7.5% everywhere since 25 May 2026, so there is no island saving for them (CIMT art. 17(10)).
- Stamp duty (0.8%) and the Casa Pronta fees are national.
Where is buying a home cheaper: the islands or the mainland?
For a tax-resident buyer of their own home, the islands. On a €300,000 own permanent home:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Portugal, Madeira | Main home, tax-resident, price €300,000 | €10,327.52 | €4,125 | €14,452.52€13,702.52 to €17,027.52 | 4.82% |
| 2 | Portugal, Azores | Main home, tax-resident, price €300,000 | €10,327.52 | €4,125 | €14,452.52€13,702.52 to €17,027.52 | 4.82% |
| 3 | Portugal (mainland) | Main home, tax-resident, price €300,000 | €12,942.04 | €4,125 | €17,067.04€16,317.04 to €19,642.04 | 5.69% |
The difference is IMT only. Stamp duty is a national 0.8%, and the deed, registry and lawyer costs are the same everywhere.
Why do Madeira and the Azores pay less IMT?
Madeira and the Azores are Portugal’s two autonomous regions, and IMT there uses the regions’ own tables. The Tax Authority builds them under Lei 21/90 by raising every bracket limit of the mainland tables by 25%, with the same rates (Ofício Circulado 40129/2026). So a given price falls lower in the island table and pays less.
| Own permanent home | Mainland | Madeira and the Azores |
|---|---|---|
| 0% band up to | €106,346 | €132,933 |
| 8% band up to | €660,982 | €826,228 |
| Single 6% up to | €1,150,853 | €1,438,566 |
| Under-35 first home, no IMT up to | €330,539 | €413,174 |
| Second home, 8% band up to | €633,931 | €792,414 |
How big is the difference at different prices?
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €150,000 | €2,208.98 | €2,250 | €4,458.98 | €4,083.98 to €5,908.98 | 2.97% |
| €250,000 | €9,042.04 | €3,500 | €12,542.04 | €11,917.04 to €14,742.04 | 5.02% |
| €400,000 | €21,436.65 | €5,375 | €26,811.65 | €25,811.65 to €30,136.65 | 6.70% |
| €600,000 | €39,036.65 | €7,875 | €46,911.65 | €45,411.65 to €51,736.65 | 7.82% |
| €900,000 | €61,200 | €11,625 | €72,825 | €70,575 to €79,900 | 8.09% |
| €1,500,000 | €124,500 | €19,125 | €143,625 | €139,875 to €155,200 | 9.57% |
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €150,000 | €1,541.34 | €2,250 | €3,791.34 | €3,416.34 to €5,241.34 | 2.53% |
| €250,000 | €6,427.52 | €3,500 | €9,927.52 | €9,302.52 to €12,127.52 | 3.97% |
| €400,000 | €18,127.52 | €5,375 | €23,502.52 | €22,502.52 to €26,827.52 | 5.88% |
| €600,000 | €35,595.78 | €7,875 | €43,470.78 | €41,970.78 to €48,295.78 | 7.25% |
| €900,000 | €61,200 | €11,625 | €72,825 | €70,575 to €79,900 | 8.09% |
| €1,500,000 | €124,500 | €19,125 | €143,625 | €139,875 to €155,200 | 9.57% |
Above the top limit, €1,438,566 in the islands, every buyer pays a single 7.5% on the whole value, so the difference disappears.
Does the gap change for a second home?
The second-home table is raised the same way, so a resident buying a holiday home also pays less in the islands:
| Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|
| Portugal (mainland) | Second home, tax-resident, price €300,000 | €14,005.50 | €4,125 | €18,130.50€17,380.50 to €20,705.50 | 6.04% |
| Portugal, Madeira | Second home, tax-resident, price €300,000 | €11,656.85 | €4,125 | €15,781.85€15,031.85 to €18,356.85 | 5.26% |
| Portugal, Azores | Second home, tax-resident, price €300,000 | €11,656.85 | €4,125 | €15,781.85€15,031.85 to €18,356.85 | 5.26% |
What about a young first-time buyer?
The under-35 exemption is the situation where the islands gain most: the full IMT exemption reaches €413,174, against €330,539 on the mainland. On a €400,000 first home:
| Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|
| Portugal (mainland) | Main home, tax-resident, first-time buyer, aged 30, price €400,000 | €6,112.57 | €5,375 | €11,487.57€10,487.57 to €14,812.57 | 2.87% |
| Portugal, Madeira | Main home, tax-resident, first-time buyer, aged 30, price €400,000 | €555.69 | €5,375 | €5,930.69€4,930.69 to €9,255.69 | 1.48% |
The conditions are national; see the under-35 exemption guide.
Which buyers see no difference?
- Non-residents. Since 25 May 2026 they pay a flat 7.5% on housing anywhere in Portugal (CIMT art. 17(10)), so the islands’ brackets do not apply to them.
- Buyers above the top band, who pay a single 7.5% everywhere.
- Buyers choosing between Madeira and the Azores, which share one set of tables.
A non-resident buying a €300,000 home:
| Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|
| Portugal (mainland) | Second home, not tax-resident, price €300,000 | €24,900 | €4,125 | €29,025€28,275 to €31,600 | 9.68% |
| Portugal, Madeira | Second home, not tax-resident, price €300,000 | €24,900 | €4,125 | €29,025€28,275 to €31,600 | 9.68% |
| Portugal, Azores | Second home, not tax-resident, price €300,000 | €24,900 | €4,125 | €29,025€28,275 to €31,600 | 9.68% |
What this comparison does not cover
- Property prices and the cost of living.
- Regional housing programmes, income tax and VAT rules in the autonomous regions.
- Annual property taxes (IMI), set by each municipality.
More detail: buying in Madeira, buying in the Azores, IMT in Portugal.
Compare mainland Portugal, Madeira and the Azores at your priceQuestions people ask
Is it cheaper to buy a house in Madeira than on the mainland?
For a tax-resident buyer, the IMT is lower or equal at every price, because Madeira's bracket limits are 25% higher. Above €1,438,566 both pay a single 7.5%. Stamp duty and fees are the same.
Is the Azores or Madeira cheaper for buying property?
Neither. The Tax Authority publishes one set of IMT tables for both autonomous regions, and stamp duty and registry fees are national, so the same purchase costs the same in both.
Do non-residents save anything by buying in the islands?
No. Since 25 May 2026 a non-resident pays a flat 7.5% IMT on housing anywhere in Portugal (CIMT art. 17(10)), so the higher island brackets do not help. Exceptions and refunds are the same as on the mainland.
Sources
- Ofício Circulado 40129/2026: IMT practical tables from 1 January 2026 (tables I to VI)Autoridade Tributária e Aduaneira
- Código do IMT, article 17 (rates, including the non-resident rate)Portal das Finanças (Autoridade Tributária e Aduaneira)
- Os meus direitos e deveres na aquisição de um prédio (leaflet, January 2026)Autoridade Tributária e Aduaneira
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.